AIR FRANCE, petitioner, vs.

RAFAEL CARRASCOSO and THE HONORABLE

COURT OF APPEALS, respondents.1966-09-28 | G.R. No. L-21438DECISION

SANCHEZ, J.:The Court of First Instance of Manila 1 sentenced petitioner to pay respondent Rafael Carrascoso P25,000.00 by way ofmoral damages; P10,000.00 as exemplary damages; P393.20 representing the difference in fare between first class andtourist class for the portion of the trip Bangkok-Rome, these various amounts with interest at the legal rate, from the dateof the filing of the complaint until paid; plus P3,000.00 for attorneys' fees; and the costs of suit.On appeal, 2 the Court of Appeals slightly reduced the amount of refund on Carrascoso's plane ticket from P393.20 toP383.10, and voted to affirm the appealed decision "in all other respects", with costs against petitioner.The case is now before us for review on certiorari.The facts declared by the Court of Appeals as "fully supported by the evidence of record", are:"Plaintiff, a civil engineer, was a member of a group of 48 Filipino pilgrims that left Manila for Lourdes on March 30,1958. On March 28, 1958, the defendant, Air France, through its authorized agent, Philippine Air Lines, Inc.,issued to plaintiff a 'first class' round trip airplane ticket from Manila to Rome. From Manila to Bangkok, plaintifftraveled in 'first class', but at Bangkok, the Manager of the defendant airline forced plaintiff to vacate the 'first class'seat that he was occupying because, in the words of the witness Ernesto G. Cuento, there was a 'white man', who,the Manager alleged, had a 'better right to the seat. When asked to vacate his 'first class' seat, the plaintiff, as wasto be expected, refused, and told defendant's Manager that his seat would be taken over his dead body; acommotion ensued, and, according to said Ernesto G. Cuento, many of the Filipino passengers got nervous in thetourist class; when they found out that Mr. Carrascoso was having a hot discussion with the white man [manager],they came all across to Mr. Carrascoso and pacified Mr. Carrascoso to give his seat to the 'white man' (Transcript,p. 12, Hearing of May 26, 1959); and plaintiff reluctantly gave his 'first class' seat in the plane." 31. The thrust of the relief petitioner now seeks is that we review "all the findings" 4 of respondent Court of Appeals.Petitioner charges that respondent court failed to make complete findings of fact on all the issues properly laid before it.We are asked to consider facts favorable to petitioner, and then, to overturn the appellate court's decision.Coming into focus is the constitutional mandate that "No decision shall be rendered by any court of record withoutexpressing therein clearly and distinctly the facts and the law on which it is based". 5 This is echoed in the statutorydemand that a judgment determining the merits of the case shall state "clearly and distinctly the facts and the law onwhich it is based", 6 and that "Every decision of the Court of Appeals shall contain complete findings of fact on all issuesproperly raised before it." 7A decision with absolutely nothing to support it is a nullity. It is open to direct attack. 8 The law, however, solely

insists that a decision state the "essential ultimate facts" upon which the court's conclusion is drawn. 9 Acourt of justice is not hidebound to write in its decision every bit and piece of evidence 10 presented byone party and the other upon the issues raised. Neither is it to be burdened with the obligation "to specifyin the sentence the facts" which a party "considered as proved". 11 This is but a part of the mentalprocess from which the Court draws the essential ultimate facts. A decision is not to be so clogged withdetails such that prolixity, if not confusion, may result. So long as the decision of the Court of Appealscontains the necessary facts to warrant its conclusions, it is no error for said court to withhold therefrom"any specific finding of facts with respect to the evidence for the defense". Because, as this Court wellobserved, "There is no law that so requires". 12 Indeed, "the mere failure to specify (in the decision) thecontentions of the appellant and the reasons for refusing to believe them is not sufficient to hold the| Page 1 of 11

same contrary to the requirements of the provisions of law and the Constitution". It is in this setting thatin Manigque, it was held that the mere fact that the findings "were based entirely on the evidence for theprosecution without taking into consideration or even mentioning the appellant's side in the controversyas shown by his own testimony", would not vitiate the judgment. 13 If the court did not recite in thedecision the testimony of each witness for, or each item of evidence presented by, the defeated party, itdoes not mean that the court has overlooked such testimony or such item of evidence. 14 At any rate,the legal presumptions are that official duty has been regularly performed, and that all the matters withinan issue in a case were laid before the court and passed upon by it. 15Findings of fact, which the Court of Appeals is required to make, may be defined as "the written statement of the ultimatefacts as found by the court . . . and essential to support the decision and judgment rendered thereon". 16 They consist ofthe court's "conclusions with respect to the determinative facts in issue" 17 A question of law, upon the other hand, hasbeen declared as "one which does not call for an examination of the probative value of the evidence presented by theparties." 182. By statute, "only questions of law may be raised" in an appeal by certiorari from a judgment of the Court of Appeals 19That judgment is conclusive as to the facts. It is not appropriately the business of this Court to alter the facts or to reviewthe questions of fact. 20With these guideposts, we now face the problem of whether the findings of fact of the Court of Appeals support itsjudgment.3. Was Carrascoso entitled to the first class seat he claims?It is conceded in all quarters that on March 28, 1958 he paid to and received from petitioner a first class ticket. Butpetitioner asserts that said ticket did not represent the true and complete intent and agreement of the parties; that saidrespondent knew that he did not have confirmed reservations for first class on any specific flight, although he had touristclass protection; that, accordingly, the issuance of a first class ticket was no guarantee that he would have a first classride, but that such would depend upon the availability of first class seats.These are matters which petitioner has thoroughly presented and discussed in its brief before the Court of Appeals underits third assignment of error, which reads: "The trial court erred in finding that plaintiff had confirmed reservations for, anda right to, first class seats on the 'definite' segments of his journey, particularly that from Saigon to Beirut." 21And, the Court of Appeals disposed of this contention thus:"Defendant seems to capitalize on the argument that the issuance of a first-class ticket was no guarantee that thepassenger to whom the same had been issued, would be accommodated in the first-class compartment, for as inthe case of plaintiff he had yet to make arrangements upon arrival at every station for the necessary first classreservation. We are not impressed by such a reasoning. We cannot understand how a reputable firm likedefendant airplane company could have the indiscretion to give out ticket it never meant to honor at all. It receivedthe corresponding amount in payment of first-class tickets end yet it allowed the passenger to be at the mercy ofits employees. It is more in keeping with the ordinary course of business that the company should know whether ornot the tickets it issues are to be honored or not." 22Not that the Court of Appeals is alone. The trial court similarly disposed of petitioner's contention, thus:"On the fact that plaintiff paid for, and was issued a 'First class ticket, there can be no question. Apart from histestimony, see plaintiffs Exhibits 'A', 'A-1' 'B', 'B-1', 'B-2', 'C' and 'C-1', and defendant's own witness, RafaelAltonaga, confirmed plaintiff's testimony and testified as follows:Q. In these tickets there are marks 'O.K.' From what you know, what does this O.K. mean?A. That the space is confirmed.Q. Confirmed for first class?

| Page 2 of 11

A. Yes, 'first class'. (Transcript, p. 169)

xxx xxx xxx"Defendant tried to prove by the testimony of its witnesses Luis Zaldariaga and Rafael Altonaga that althoughplaintiff paid for, and was issued a 'first class' airplane ticket, the ticket was subject to confirmation in Hongkong.The court cannot give credit to the testimony of said witnesses. Oral evidence cannot prevail over written evidence,and plaintiff's Exhibits 'A', 'A1', 'B', 'B-1', 'C' and 'C- 1' belie the testimony of said witnesses, and clearly show thatthe plaintiff was issued, and paid for, a first class ticket without any reservation whatever.Furthermore, as hereinabove shown, defendant's own witness Rafael Altonaga testified that the reservation for a'first class' accommodation for the plaintiff was confirmed. The court cannot believe that after such confirmation,defendant had a verbal understanding with plaintiff that the 'first class' ticket issued to him by defendant would besubject to confirmation in Hongkong." 23We have heretofore adverted to the fact that except for a slight difference of a few pesos in the amount refunded onCarrascoso's ticket, the decision of the Court of First Instance was affirmed by the Court of Appeals in all other respects.We hold the view that such a judgment of affirmance has merged the judgment of the lower court. 24 Implicit in thataffirmance is a determination by the Court of Appeals that the proceeding in the Court of First Instance was free fromprejudicial error and that 'all questions raised by the assignments of error and all questions that might have been soraised are to be regarded as finally adjudicated against the appellant". So also, the judgment affirmed "must be regardedas free from all error" 25 We reached this policy construction because nothing in the decision of the Court of Appeals onthis point would suggest that its findings of fact are in any way at war with those of the trial court. Nor was said affirmanceby the Court of Appeals upon a ground or grounds different from those which were made the basis of the conclusions ofthe trial court. 26If, as petitioner underscores, a first-class-ticket holder is not entitled to a first class seat, notwithstanding the fact that seatavailability in specific flights is therein confirmed, then an air passenger is placed in the hollow of the hands of an airline.What security then can a passenger have? It will always be an easy matter for an airline aided by its employees, to strikeout the very stipulations in the ticket, and say that there was a verbal agreement to the contrary. What if the passengerhad a schedule to fulfill? We have long learned that, as a rule, a written document speaks a uniform language; thatspoken word could be notoriously unreliable. If only to achieve stability in the relations between passenger and air carrier,adherence to the ticket so issued is desirable. Such is the case here. The lower courts refused to believe the oralevidence intended to defeat the covenants in the ticket.The foregoing are the considerations which point to the conclusion that there are facts upon which the Court of Appealspredicated the finding that respondent Carrascoso had a first class ticket and was entitled to a first class seat at Bangkok,which is a stopover in the Saigon to Beirut leg of the flight, 27 We perceive no "welter of distortions by the Court ofAppeals of petitioner's statement of its position", as charged by petitioner. 28 Nor do we subscribe to petitionersaccusation that respondent Carrascoso "surreptitiously took a first class seat to provoke an issue". 29 And this because,as petitioner states, Carrascoso went to see the Manager at his office in Bangkok "to confirm my seat and because fromSaigon I was told again to see the Manager. 30 Why, then, was he allowed to take a first class seat in the plane atBangkok, if he had no seat? Or, if another had a better right to the seat?4. Petitioner assails respondent court's award of moral damages. Petitioner's trenchant claim is that Carrascoso's action isplanted upon breach of contract; that to authorize an award for moral damages there must be an averment of fraud or badfaith; 31 and that the decision of the Court of Appeals fails to make a finding of bad faith. The pivotal allegations in thecomplaint bearing on this issue are:"3. That . . . plaintiff entered into a contract of air carriage with the Philippine Air Lines for a valuable consideration, thelatter acting as general agents for and in behalf of the defendant, under which aid contract, plaintiff was entitled to, asdefendant agreed to furnish plaintiff, First Class passage on defendant's plane during the entire duration of plaintiff's tourof Europe with Hongkong as starting point up to and until plaintiff's return trip to Manila, . . .4. That during the first two legs of the trip from Hongkong to Saigon and from Saigon to Bangkok, defendant furnished tothe plaintiff First Class accommodation but only after protestations, arguments and/or insistence were made by theplaintiff with defendant's employees.

| Page 3 of 11

5. That finally, defendant failed to provide First Class passage, but instead furnished plaintiff only Tourist Classaccommodations from Bangkok to Teheran and/or Casablanca, . . . the plaintiff has been compelled by defendant'semployees to leave the First Class accommodation berths at Bangkok after he was already seated.6. That consequently, the plaintiff, desiring no repetition of the inconvenience and embarrassments brought bydefendant's breach of contract was forced to take a Pan American World Airways plane on his return trip from Madrid toManila. 32xxx xxx xxx2. That likewise, as a result of defendant's failure to furnish First Class accommodations aforesaid, plaintiff sufferedinconveniences, embarrassments, and humiliations, thereby causing plaintiff mental anguish, serious anxiety, woundedfeelings, social humiliation, and the like injury, resulting in moral damages in the amount of P30,000.00." 33xxx xxx xxxThe foregoing, in our opinion, substantially aver: First, That there was a contract to furnish plaintiff a first class passagecovering, amongst others, the Bangkok-Teheran leg; Second, That said contract was breached when petitioner failed tofurnish first class transportation at Bangkok; and Third, That there was bad faith when petitioner's employee compelledCarrascoso to leave his first class accommodation berth "after he was already seated" and to take a seat in the touristclass, by reason of which he suffered inconvenience, embarrassments and humiliations, thereby causing him mentalanguish, serious anxiety, wounded feelings and social humiliation, resulting in moral damages. It is true that there is nospecific mention of the term bad faith in the complaint. But, the inference of bad faith is there; it may be drawn from thefacts and circumstances set forth therein. 34 The contract was averred to establish the relation between the parties. Butthe stress of the action is put on wrongful expulsion.

Quite apart from the foregoing is that (a) right at the start of the trial, respondent's counsel placed petitioner on guard onwhat Carrascoso intended to prove: That while sitting in the plane in Bangkok, Carrascoso was ousted by petitioner'smanager who gave his seat to a white man; 35 and (b) evidence of bad faith in the fulfillment of the contract waspresented without objection on the part of the petitioner. It is, therefore, unnecessary to inquire as to whether or not thereis sufficient averment in the complaint to justify an award for moral damages. Deficiency in the complaint, if any, wascured by the evidence. An amendment thereof to conform to the evidence is not even required. 36 On the question of badfaith, the Court of Appeals declared:

"That the plaintiff was forced out of his seat in the first class compartment of the plane belonging to the defendantAir France while at Bangkok, and was transferred to the tourist class not only without his consent but against hiswill, has been sufficiently established by plaintiff in his testimony before the court, corroborated by thecorresponding entry made by the purser of the plane in his notebook which notation reads as follows:'First-class passenger was forced to go to the tourist class against his will and that the captain refused to intervene',and by the testimony of an eye-witness Ernesto G Cuento, who was a co-passenger. The captain of the plane whowas asked by the manager of defendant company at Bangkok to intervene even refused to do so. It is noteworthythat no one on behalf of defendant ever contradicted or denied this evidence for the plaintiff. It could have beeneasy for defendant to present its manager at Bangkok to testify at the trial of the case, or yet to secure hisdeposition; but defendant did neither. 37The Court of Appeals further stated "Neither is there evidence as to whether or ,not a prior reservation was made by the white man. Hence, if the employeesof the defendant at Bangkok sold a first-class ticket to him when all the seats had already been taken, surely the plaintiffshould not have been picked out as the one to suffer the consequences and to be subjected to the humiliation andindignity of being ejected from his seat in the presence of others. Instead of explaining to the white man the improvidencecommitted by defendant's employees, the manager adopted the more drastic step of ousting the plaintiff who was thensafely ensconced in his rightful seat. We are strengthened in our belief that this probably was what happened there, bythe testimony of defendant's witness Rafael Altonaga who, when asked to explain the meaning of the letters 'O.K.,appearing on the tickets of plaintiff, said that 'the space is confirmed' for first class. Likewise, Zenaida Faustino, another

| Page 4 of 11

witness for defendant, who was the chief of the Reservation Office of defendant, testified as follows:'Q. How does the person in the ticket-issuing office know what reservation the passenger has arranged with you?A. They call us up by phone and ask for the confirmation.' (t.s.n., p. 247, June 19, 1959)In this connection, we quote with approval what the trial Judge has said on this point:'Why did the, using the words of witness Ernesto G. Cuento, 'white man' have a 'better right' to the seat occupiedby Mr. Carrascoso? The record is silent. The defendant airline did not prove 'any better', nay, any right on the partof the 'white man' to the 'First class' seat that the plaintiff was occupying and for which he paid and was issued acorresponding 'first class' ticket.'If there was a justified reason for the action of the defendant's Manager in Bangkok, the defendant could haveeasily proven it by having taken the testimony of the said Manager by deposition, but defendant did not do so; thepresumption is that evidence willfully suppressed would be adverse if produced [Sec. 69, par. (e) Rules of Court];and, under the circumstances, the Court is constrained to find, as it does find, that the Manager of the defendantairline in Bangkok not merely asked but threatened the plaintiff to throw him out of the plane if he did not give uphis 'first class' seat because the said Manager wanted to accommodate using the words of the witness Ernesto G.Cuento, the 'white man'." 38It is really correct to say that the Court of Appeals in the quoted portion first transcribed did not use the term "badfaith". But can it be doubted that the recital of facts therein points to bad faith? The manager not only preventedCarrascoso from enjoying his right to a first class seat; worse, he imposed his arbitrary will; he forcibly ejected himfrom his seat, made him suffer the humiliation of having to go to the tourist class compartment - just to give way toanother passenger whose right thereto has not been established. Certainly, this is bad faith. Unless, of course, badfaith has assumed a meaning different from what is understood in law. For, "bad faith" contemplates a "state ofmind affirmatively operating with furtive design or with some motive of self-interest or ill will or for ulteriorpurposes." 39And if the foregoing were not yet sufficient, there is the express finding of bad faith in the judgment of the Court of FirstInstance, thus:"The evidence shows that defendant violated its contract of transportation with plaintiff in bad faith, with theaggravating circumstances that defendant's Manager in Bangkok went to the extent of threatening the plaintiff inthe presence of many passengers to have him thrown out of the airplane to give the 'first class' seat that he wasoccupying to, again using the words of witness Ernesto G. Cuento, a 'white man' whom he (defendant's Manager)wished to accommodate, and the defendant has not proven that this 'white man' had any 'better right' to occupythe 'first class' seat that the plaintiff was occupying, duly paid for, and for which the corresponding 'first class' ticketwas issued by the defendant to him." 405. The responsibility of an employer for the tortuous act of its employees-need not be essayed. It is well settled in law. 41For the willful malevolent act of petitioner's manager, petitioner's his employer, must answer. Article 21 of the Civil Codesays:"Art. 21. Any person who willfully causes loss or injury to another in a manner that is contrary to morals, goodcustoms or public policy shall compensate the latter for the damage."In parallel circumstances, we applied the foregoing legal precept; and, we held that upon the provisions of Article 2219(10), Civil Code, moral damages are recoverable. 426. A contract to transport passengers is quite different in kind and degree from any other contractual relation. 43 And this,because of the relation which an air-carrier sustains with the public. Its business is mainly with the travelling public. Itinvites people to avail of the comforts and advantages it offers. The contract of air carriage, therefore, generates a relationattended with a public duty. Neglect or malfeasance of the carrier's employees, naturally, could give ground for an actionfor damages.

| Page 5 of 11

Passengers do not contract merely for transportation. They have a light to be treated by the carrier's employees withkindness, respect, courtesy and due consideration. They are entitled to be protected against personal misconduct,injurious language, indignities and abuses from such employees. So it is, that any rude or discourteous conduct on thepart of employees towards a passenger gives the latter an action for damages against the carrier. 44Thus, "Where a steamship company 45 had accepted a passenger's check, it was a breach of contract and a tort, giving aright of action for its agent in the presence of third persons to falsely notify her that the check was worthless and demandpayment under threat of ejection, though the language used was not insulting and she was not ejected. 46 And this,because, altho the relation of passenger and carrier is "contractual both in origin and nature" nevertheless "the act thatbreaks the contract may be also a tort". 47 And in another case, "Where a passenger on a railroad train, when theconductor came to collect his fare, tendered him the cash fare to a point where the train was scheduled not to stop, andtold him that as soon as the train reached such point he would pay the cash fare from that point to destination, there wasnothing in the conduct of the passenger which justified the conductor in using insulting language to him, as by calling hima lunatic," 48 and the Supreme Court of South Carolina there held the carrier liable for the mental suffering of saidpassenger.

Petitioner's contract with Carrascoso is one attended with public duty. The stress of Carrascoso's actionas we have said, is placed upon his wrongful expulsion. This is a violation of public duty by thepetitioner-air carrier - a case of quasi-delict. Damages are proper.

"Q. You mentioned about an attendant. Who is that attendant and purser?

A. When we left already - that was already in the trip - I could not help it. So one of the flightattendants approached me and requested from me my ticket and I said, What for? and she said,'We will note that you were transferred to the tourist class'. I said, 'Nothing of that kind. That istantamount to accepting my transfer.' And I also said, You are not going to note anything therebecause I am protesting to this transfer.

Q. Was she able to note it?

A. No, because I did not give my ticket.

Q. About that purser?

A. Well, the seats there are so close that you feel uncomfortable and you don't have enough legroom, I stood up and I went to the pantry that was next to me and the purser was there. He told me,| Page 6 of 11

'I have recorded the incident in my notebook.' He read it and translated it to me - because it wasrecorded in French - 'First class passenger was forced to go to the tourist class against his will,and that the captain refused to intervene.'

MR. VALTE -

I move to strike out the last part of the testimony of the witness because the best evidence wouldbe the notes. Your Honor.

COURT -

I will allow that as part of his testimony." 49

Petitioner charges that the finding of the Court of Appeals that the purser made an entry in his notebooksreading "First class passenger was forced to go to the tourist class against his will, and that the captainrefused to intervene" is predicated upon evidence [Carrascoso's testimony above] which is incompetent.We do not think so. The subject of inquiry is not the entry, but the ouster incident. Testimony of the entrydoes not come within the proscription of the best evidence rule. Such testimony is admissible. 49

Besides, from a reading of the transcript just quoted, when the dialogue happened, the impact of the startling occurrencewas still fresh and continued to be felt. The excitement had not as yet died down. Statements then, in this environment,are admissible as part of the res gestae. 50 For, they grow "out of the nervous excitement and mental and physicalcondition of the declarant". 51 The utterance of the purser regarding his entry in the notebook was spontaneous, andrelated to the circumstances of the ouster incident. Its trustworthiness has been guaranteed. 52 It thus escapes theoperation of the hearsay rule. It forms part of the res gestae.

At all events, the entry was made outside the Philippines. And, by an employee of petitioner. It would have been an easymatter for petitioner to have contradicted Carrascoso's testimony. If it were really true that no such entry was made, thedeposition of the purser could have cleared up the matter.

We, therefore, hold that the transcribed testimony of Carrascoso is admissible in evidence.

8. Exemplary damages are well awarded. The Civil Code gives the Court ample power to grantexemplary damages - in contracts and quasi-contracts. The only condition is that defendant should have"acted in a wanton, fraudulent, reckless, oppressive, or malevolent manner". 53 The manner ofejectment of respondent Carrascoso from his first class seat fits into this legal precept. And this, inaddition to moral damages. 54

| Page 7 of 11

9. The right to attorneys' fees is fully established. The grant of exemplary damages justifies a similar judgment forattorneys' fees. The least that can be said is that the courts below felt that it is but just and equitable that attorneys' feesbe given. 55 We do not intend to break faith with the tradition that discretion well exercised - as it was here -should not bedisturbed.10. Questioned as excessive are the amounts decreed by both the trial court and the Court of Appeals, thus: P25,000.00as moral damages; P10,000.00, by way of exemplary damages, and P3,000.00 as attorney's fees. The task of fixingthese amounts is primarily with the trial-court. 56 The Court of Appeals did not interfere with the same. The dictates ofgood sense suggest that we give our imprimatur thereto. Because, the facts and circumstances point to thereasonableness thereof. 57On balance, we say that the judgment of the Court of Appeals does not suffer from reversible error. We accordingly voteto affirm the same. Costs against petitioner. So ordered.

Segment or leg Carrier Flight No. Date of Departure

1. Manila to Hongkong PAL 300A March 30

28. Petitioner's brief, p. 50; see also id., pp. 37 and 46.29. Id., p. 103.30. Ibid., p. 102.31. Article 2220, Civil Code reads: "Willful injury to property may be a legal ground for awarding moraldamages if the court should find that, under the circumstances, such damages are justly due. The samerule applies to breaches of contract where the defendant acted fraudulently or in bad faith."| Page 9 of 11

"SEC. 5. Amendment to conform to or authorize presentation of evidence. - When issues not raised by thepleadings are tried by express or implied consent of the parties, they shall be treated in all respects, as if they hadbeen raised in the pleadings. Such amendment of the pleadings as may be necessary to cause them to conform tothe evidence and to raise these issues may be made upon motion of any party at any time, even after judgment;but failure so to amend does not affect the result of the trial of these issues . . .; Co Tiamco vs. Diaz, etc., et al., 75Phil., 672, 679; J. M. Tuason & Co., Inc., etc., vs. Bolanos, 95 Phil., 106, 110.